r_J A_13-15_HTC711-08-D-0012_J A.pdf

USTRANSCOM

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

FIFTEEN PASSENGER AIR CHARTER SERVICE FROM ELMENDORF AFB,

ALASKA, TO EARECKSON AFS AND ADAK ISLAND, ALASKA

1. CONTRACTING ACTIVITY.

United States Transportation Command, Contract Airlift Division, USTRANSCOMITCAQ-C, 508 Scott Drive, Building 1900W, Scott AFB, IL 62225.

2. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED.

Pursuant to FAR 52.217-8, Option to Extend Services and FAR 6.302-1, the Government intends to exercise the six-month extension of services clause and award a one-month period of performance extension, for a total of seven months, on Contract HTC711-08-D-0012, for fifteen passenger air charter service from Elmendorf AFB, Alaska, to Eareckson AFS and Adak Island, Alaska, from 1 March 2013 to 30 September 2013. The Government requires the additional seven months of performance under this contract in order to prevent interruption of service while the Government negotiates the follow-on FY14 Alaska Cargo and Passenger Air Charter Services requirement. It is the Government's intent to exercise this clause and award the one month period of performance extension resulting in an additional seven months of performance at the same rates specified in the final option period of the contract.

The seven-month extension is required to allow USTRANSCOM to ensure a seamless transition when moving the fifteen passenger Alaska air charter requirement to a fiscal year cycle with the other three Alaska air charter requirements.

The anticipated FY14 Alaska Passenger and Cargo Air Charter Services requirement will be solicited under full and open competitive procedures, with a potential for small business set asides for the passenger requirements.

The FY 14 requirement will consist of two passenger and two cargo requirements. The passenger requirements will be for seven and fifteen passenger aircraft, and the cargo requirements will be for 25,000 lb. and 40,000 lb. aircraft.

The extension of services option period was not evaluated at the time of initial award as required by FAR 17 .207(f), and the one month extension will be sole-sourced, therefore a Justification for Other Than Full and Open Competition is being executed.

3. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED TO MEET THE

AGENCY'S NEEDS.

The United States Transportation Command has a continuing requirement for air transportation services from Elmendorf AFB to Eareckson AFS AK and Adak Island, via contractor-furnished, IFR-equipped, multi-engine aircraft. The aircraft utilized must be capable of transporting a minimum of fifteen passengers with baggage and small cargo not to exceed ISO lbs (high priority non-hazardous) up to the aircraft ACL (allowable cabin load}. The proposed aircraft must (1) be capable of flying from Elmendorf AFB AK to Eareckson AFS AK in no more than five hours flying time with a minimum load of fifteen passengers, fuel, and baggage; (2) have a range to be able to miss an approach at Eareckson and continue to a suitable alternate with a full load of passengers, fuel, and baggage; (3) operate at 19,000 feet or higher; (4} have a maximum ACL of at least 4,500 lbs but must have the capability of carrying I 00 lbs of baggage per passenger; and

(5) have at least fifteen passenger seats and be capable of carrying up to 390 passengers per month to/from Eareckson AFS, flying missions at least two and not more than three times per week. The seven-month extension covers the period of I March to 30 September 2013 and is estimated at .

Solicitation HTC711-07-R-0013 for the current contract was issued as a Total Small Business Set Aside, and fixed price contract HTC711-08-D-0012 was awarded to Flightworks, Inc., effective I March 2008. The award originally included a base year and four option years ending 28 February 2013, but a modification was issued to shorten Option Period Two to seven months so the option ended on 30 September 2010, and to add an Option Period Five for the last five months of the contract (1 October 2012-28 February 2013). The modification allowed Option Periods Three, Four, and Five to run concurrent with each respective fiscal year, in lieu of the original March to February periods crossing fiscal years. The contract end date remained unchanged at 28 February 2013.

4. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN

COMPETITION.

10 USC 2304(c}(l), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. DEMONSTRATION THAT THE PROPOSED CONTRACTOR'S UNIOUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE OF

THE AUTHORITY CITED.

The Government requires continuation of the fifteen passenger air charter services requirement between Elmendorf AFB AK and Eareckson AFS/Adak Island AK. The 732nd Air Mobility Squadron (732d AMS) and end users require continued services without interruption or a break in service. The chartered airlift services between Elmendorf AFB AK and Eareckson AFS/ Adak Island AK provide for movement of up to 390 passengers between Elmendorf and Eareckson AFS/ Adak Island each month with up to three round trip missions per week. Competing the seven-month requirement at this time would result in substantial duplication of costs to the Government that could not be recovered through open competition because the same requirement will be fully competed along with three other Alaska requirements in Spring/Summer 2013 with synchronized awards in October 2013. The four new awards will be funded and run concurrently with each fiscal year. Competing a seven-month requirement may result in a new contractor ramping up for seven months, and then having to recompete for another contract. This short term contract action will significantly increase prices due to the cost of startup and potential risk of a short-term contract. These costs will most likely be higher than the extension which will use previously negotiated prices. Therefore, there are no expected cost savings that would be recovered in a full and open competition.

The following data from market research shows the estimated cost to recompete for seven months would exceed the current rates available in the Flightworks, Inc., contract:

Flightworks, Inc. Estimated Price for Seven Month Period of 1 March 30 September 2013:

• Total Statute Miles (SMs): 2,926 SMs/Round Trip (RT) * 91 RTs = 266,266 SMs

• Total Gallons Fuel Burned: 266,266 SMs • 1.44 Gallons/SM = 383,423.04 Gallons Fuel Required

• Fuel EPA Rate: $4.00/Gallon (estimated current fuel price) less $2.14/Gallon Contract Fuel Peg Rate=

$1.86 Fuel EPA Rate per Gallon

• Total Fuel EPA: $1.86/Gallon Fuel EPA Rate • 383,423.04 Gallons Fuel= $713,166.85 Total Fuel EPA

• Estimated Total Pax: 182 Flight Legs • 15 Pax per Leg= 2,730 Pax

• Total Pax Surcharge: 2,730 Pax • $8.40/pax = $22,932.00 Total Pax Snrcharge

• Total Air Transportation Price: 266,266 SMs • Rate per SM = Total Air

Transportation Price

• Federal Excise Tax of7.5%: +$7!3,166.85)*7.5%=

• Total Price: for a total of91 Round Trips (Estimated 8 Hours per Round Trip)

• Total Estimated Price Per Honr: /Honr (INCLUSIVE of Fuel, Snrcharges, and Taxes)

Estimated Hourly Rates Offered By Other Chartered Carriers Offering a Similar 13-15 Seat Aircraft (e.g.

Gulfstream M:

• Richmor Aviation: $4,500.00 Hourly Rate+ $1,339.43/Hour for Fuel, Surcharges, and Taxes= $5,839.43/Hour

• Encore Aviation: $4,636.00 Hourly Rate+ $1,339.43/Hour for Fuel, Surcharges, and Taxes= $5,975.43/Hour

• New Flight Charters: $5,200.00 Hourly Rate+ $1 ,339.43/Hour for Fuel, Surcharges, and Taxes= $6,539.43/Honr

• Stratos Jet Charters: $5,000.00 Hourly Rate+ $1,339.43/Hour for Fuel, Surcharges, and Taxes= $6,339.43/Honr

• Mercury Jet Charter: $4,200.00 + $1,339 .43/Hour for Fuel, Surcharges, and Taxes= $5,539.43/Hour

• CSI Aviation Services: Not-to-Exceed (NTE) $6,275.00 + $1,339.43/Hour for Fuel, Surcharges, and Taxes= NTE $7 ,614.43/Honr

The estimated total cost per hour for each of the six carriers above, inclusive of additional estimated fuel costs, surcharges, and taxes, exceeds Flightworks' estimated current price per hour based on the current rates in the Flightworks contract and an estimated eight (8) hours of travel time required to perform a round trip flight from Elmendorf AFB AK to Eareckson AFS AK and back to Elmendorf.

Per the above, the current contractor, Flightworks, Inc., is the only source that can provide the required services without the substantial duplication of cost to the Government, which would, based on the research above, not be recovered through competition. Flightworks, Inc., possesses the current aircraft holding and maintenance facilities located at Ted Stevens International Airport in Anchorage, AK, that are required to provide the fifteen passenger air charter services.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICAL

The effort will be recompeted under the FY14 Alaska Passenger and Cargo Air Charter Requirement. See Number 9 below.

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

Flightworks, Inc., the current contractor, has agreed to extend the current rates in Option Period Five, to the seven month extension. These prices have already been determined fair and reasonable during the original source selection and again when the fifth option period was executed.

8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTSORASTATEMENTOFTHEREASONSMARKETRESERACHWASNOT

CONDUCTED:

Market research indicated a seven-month extension at the current rates in the Flightworks contract would be less expensive than a competed contract for a short one-month period of performance. Given an estimated thirteen round trip flights for the month of September 2013, the estimated price for Flightworks to perform these missions is based on data in paragraph 5 above. The estimated cost for the month of September 2013 for the other six carriers listed in paragraph 5 to perform the 13 round trip flights ranges from $576,100.72 to $791,900.72, well above Flightworks' estimated cost.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION.

The Government is in the process of soliciting all Alaska Passenger and Cargo Air Charter Services to be awarded under a multiple award contract to begin I October 2013. Market research will be conducted to confirm whether or not a portion or all of the FYI4 Alaska Passenger and Cargo Air Charter Services can be set aside for small business concerns.

10. A LISTING OF SOURCES. IF ANY. THAT EXPRESSED AN INTEREST IN THE

ACQUISITION:

A notice of this intent will be released on FedBizOpps, publicizing the Government's intent to extend the Fifteen Passenger Air Charter Services contract with Flightworks, Inc., using FAR 52.217-8 and 6.302-1.

11. A STATEMENT OF ACTIONS. IF ANY. THE AGENCY MAY TAKE TO REMOVE

OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE MAKING ANY

SUBSEQUENT ACQUISITION FOR THE SUPPLIES OR SERVICES REQUIRED:

The requested extension will allow the follow-on for this requirement to be procured under the FY 14 Alaska Passenger and Cargo solicitation.

12. CONTRACTING OFFICER'S CERTIFICATION.

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

oOJGL)}M.cooK Contracting Officer

'2.cl Fe.~ I'S

DATE

13. TECHNICAL/REQUIREMENTS PERSONNEL CERTIFICATION.

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

R. SCOTT NEIPER, Lt Col, USAF Commander, 611 ASUS lO Feb 13

DATE

CONTRACTING ACTIVITY:

PROGRAM/PROJECT: Fifteen Passenger Air Charter Service from Elmendorf AFB, Alaska, to Eareckson AFS and Adak Island, Alaska

AUTHORITY: 10 USC 2304(c){l), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

ESTIMATED CONTRACT COST:

TYPE OF J&A (Class or Individual): Individual

REVIEW AND APPROVAL:

SANDRA M. HALAMA

Chief, Contract Airlift Division

JEF

siness Support and Policy Division

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